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Avendus, India’s prime enterprise advisor, confirms it is trying to increase a $350 million fund

Avendus, the highest funding financial institution for enterprise offers in India, confirmed on Wednesday it’s trying to increase as much as $350 million for its new non-public fairness fund. 

The brand new fund, known as Future Leaders Fund III, will allow the Mumbai-headquartered agency to put in writing bigger checks and preserve a significant place within the startups it backs, mentioned its managing accomplice Ritesh Chandra in an interview with TechCrunch. TechCrunch reported in early April that Avendus was placing collectively a plan to lift a brand new fund.

Avendus has established itself as the biggest enterprise advisor for startups in India, an everyday fixture in most growth-stage offers within the nation. It offered companies in over 30 offers final yr, together with merger and acquisition transactions, in line with Enterprise Intelligence, a personal market perception platform. The rising dimension of its non-public fairness unit underscores the agency’s ambitions to get its tentacles entrenched much more deeply into the ecosystem and have extra upsides on the winnings.

The agency’s rise to prominence was aided by the truth that lots of its well-established world rivals, similar to Goldman Sachs, Morgan Stanley, and JP Morgan, initially paid much less consideration to the Indian market, permitting Avendus to realize a foothold and construct relationships with the nation’s burgeoning tech entrepreneurs. 

That relationship can also be serving to the agency’s non-public fairness unit to realize entry to among the high-profile offers. Monetary companies startups Juspay and Zeta have largely allowed solely Avendus exterior of lead backer SoftBank on their cap tables, as an example. “These are companies that got here out of {our relationships} and networks,” mentioned Chandra. 

Avendus’ non-public fairness unit, whose portfolio consists of Delhivery, Lenskart, Licious, VerSe Innovation, Xpressbees, and the Nationwide Inventory Change, has additionally earned a status for delivering giant exits to its backers well timed. LensKart and the Nationwide Inventory Change, as an example, each delivered 4 instances the cash Avendus invested in inside 4 years of investments.

“Our fund’s lifecycle is 5 to 6 years. An issue with the Indian startup ecosystem is that buyers have poured a variety of capital however don’t see a lot returns for an extended time period. We’re targeted on how can we get our a refund,” he mentioned.

Regardless of the rising development of tech startups in India going public, a phenomenon that was unusual simply 4 years in the past, buyers can’t solely depend on IPOs for returns. In accordance with Chandra, Avendus has established relationships that allow the corporate to exit its positions by promoting stakes to late-stage buyers, similar to sovereign buyers, offering an alternate avenue for producing returns other than IPOs.



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